TEJON RANCH CO
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
TRC$17.04+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000096869-24-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001628280-25-023871
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 131 current paragraphs.
61 unchanged; 52 reworded; 18 added; 28 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 17 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
At our fully operational mixed-use master planned community, TRCC, we are currently executing on value creation as we are actively engaged in construction, commercial sales, and leasing. In the second quarter of 2025, our real estate operations are expanding to include residential leasing with the launch of Terra Vista at Tejon, our multi-family project that began development in 2024. Leasing is expected to commence in May, marking a key milestone in diversifying our portfolio and enhancing long-term recurring revenue streams.
Current report
Summary of First Quarter 2025 Performance
Current report
For the three months ended March 31, 2025, we had a net loss attributable to common stockholders of $1,464,000 compared to a net loss attributable to common stockholders of $914,000 for the three months ended March 31, 2024. The primary driver of this $550,000 increase in net loss was an increase of $1,083,000 in professional and consulting fees incurred to defend the Company and its long-term strategy from a dissident proxy campaign that required significant engagement with shareholders and external advisors. Equity in earnings from the unconsolidated joint ventures decreased by $355,000, primarily related to the decreased fuel sales volume from our TA/Petro joint venture. The above increases to net loss were partially offset by a decrease in professional service fees within the resort/residential segment of $1,175,000 compared with the prior year period.
Current report
•Commercial/industrial real estate development segment revenues were $2,754,000 for the three months ended March 31, 2025, a decrease of $191,000, or 6%, from $2,945,000 for the three months ended March 31, 2024. The decrease was primarily attributable to a reduction in landscaping and other revenue of $95,000 due to a lower amount of landscape maintenance service provided compared to the prior year quarter, and a $64,000 decrease in TRCC management fees, as no development fee was recognized during the current quarter given the absence of commercial buildings under construction. Additionally, Pastoria Energy Facility revenues decreased by $62,000 during the period due to lower spark spread payments for the period.
Current report
•Commercial/industrial real estate development segment expenses were $1,847,000 for the three months ended March 31, 2025, a decrease of $80,000, or 4%, from $1,927,000 for the three months ended March 31, 2024. The decrease was attributable to lower operating expenses of $92,000 and tenant recoverable expenses of $14,000, partially offset by an additional $2,000 of general and administrative expenses incurred during the quarter.
Current report
Resort/residential real estate development segment expenses were $386,000 for the three months ended March 31, 2025, a decrease of $1,175,000 from $1,561,000 for the three months ended March 31, 2024. This decrease was primarily attributable to a decrease of $1,252,000 of professional service fees and planning cost related to capital efforts tied to our master planned communities due to a one-time retainer fee paid in the first quarter of 2024. In 2025, the retainer fee negotiated is $238,000 for the first two quarters of 2025, then reduced to $138,000 for the third and fourth quarters. The current period expenses consisted of general and administrative expenses of $352,000, professional services of $21,000 and other expenses of $13,000 for the three months ended March 31, 2025. The main components of the other expenses included travel and entertainment expenses and depreciation expenses.
Current report
All SWP water contracts require annual payments related to the fixed and variable costs of the SWP and each water district, whether or not water is used or available. In addition to surface water supplies, the Company has access to adjudicated groundwater rights, including an annual allocation of 1,634 acre-feet in the Antelope Valley Basin. Portions of our property also have available groundwater, which the Company believes are sufficient to support its commercial development plans along the Interstate 5 corridor and its ongoing agricultural operations.
Current report
In Kern County, the Company’s lands span three groundwater basins governed by the Sustainable Groundwater Management Act (SGMA): the Kern Subbasin, the White Wolf Subbasin, and the Castac Basin. Approximately 9% of the Company's Kern County land is within the Kern Subbasin and is primarily used for grazing with minimal water use. In contrast, the White Wolf Subbasin is being sustainably managed, with an approved GSP requiring only minor corrections, while the Castac Basin is a low-priority basin with no anticipated restrictions. The Company believes its diverse mix of surface water supplies, adjudicated groundwater rights, and banked water positions it well to navigate evolving regulatory frameworks and meet future water needs.
Current report
•Farming segment revenues totaled $1,556,000 for the three months ended March 31, 2025, representing an increase of $691,000, or 80%, from $865,000 for the same period in 2024. The increase was primarily driven by a $732,000 increase in almond sales revenue, attributed to both higher average pricing and a greater volume of crop available for sale. During the three months ended March 31, 2025, we sold approximately 571,000 pounds of almonds, compared to 381,000 pounds in the prior period. This increase was partially offset by a decrease in hay revenue, reflecting the Company's strategic decision to scale back its hay operations during the current period.
Current report
Our almond, pistachio, and wine grape crop sales are subject to significant seasonality, with the majority of sales typically occurring during the third and fourth quarters of the year. Almonds and pistachios are generally sold at prevailing market prices, while wine grapes are sold under contracted pricing arrangements with wineries. It is too early in the production cycle for 2025 to have a subjective estimate of potential production for almonds, grapes, and pistachios. In 2025, the Company's crop segmentation in its farming division will include the planting of an olive orchard, diversifying the Company's commodity products and best positioning the Company for market changes.
Current report
The USDA's Subjective Forecast for the 2025 California almond crop is scheduled to be released on May 12, 2025, and will provide the first official estimate of the upcoming harvest. In the absence of this forecast, industry sources have identified several factors that may influence 2025 almond production levels. Pollination challenges have emerged due to significant reported honeybee colony losses, with estimates indicating a shortage of hives required for adequate almond pollination. This shortfall may adversely impact crop yields for the 2025 growing season. In addition, recent announcements of new tariff measures by the U.S. government have raised concerns about potential retaliatory trade actions from key export markets, including the European Union, India, and China. These trade uncertainties could affect export demand and exert downward pressure on almond pricing for the 2025 crop year.
Current report
Weather conditions can also impact the number of tree and vine dormant hours, which are integral to tree and vine growth. In early 2025, California farmers faced a warm winter that led to insufficient chill accumulation, particularly affecting pistachio orchards. Additionally, late winter and early spring rainstorms disrupted various farming activities, including pesticide applications. These delays may impact crop management schedules, but the full effect on production won't be clear until later in the summer.
Current report
Corporate general and administrative costs were $4,236,000 for the three months ended March 31, 2025, an increase of $1,744,000, from $2,492,000 for the same period in 2024. The increase was primarily attributable to the additional professional fees and consulting expenses incurred during the period of $1,083,000 to defend the Company and its long-term strategy from a dissident proxy campaign that required significant engagement with shareholders and external advisors. Additionally, the Company incurred an increase of $507,000 of higher compensation expenses over the comparative period due to prorated bonus earned by an outgoing executive in connection with his retirement on March 31, 2025. The main components of the 2025 corporate expenses included salaries and compensation expenses of $2,668,000 and other expenses of $1,568,000. Other expenses include professional services fees, licenses and fees, and depreciation expenses.
Current report
•Equity in earnings was $1,158,000 for the three months ended March 31, 2025, a decrease of $355,000, from $1,513,000 during the same period in 2024. The decrease was primarily attributable to a decrease in equity in earnings recorded for the TA/Petro joint venture of $310,000 as a result of lower fuel sales volumes. We also recognized a decrease in equity in earnings from our TRC-MRC 5, LLC joint venture of $66,000 due to an increase in the property tax expenses over the comparative period. These decreases were partially offset by a $127,000 increase in earnings from our TRC-MRC 1, LLC joint venture due to higher revenue recognized from the lease with a new tenant at a higher lease rate beginning May 2024.
Current report
To enhance long-term shareholder value, we expect to continue allocating capital toward vertical development within our active commercial and industrial portfolio, including construction on Terra Vista at Tejon, our new multi-family apartment community located immediately adjacent to the Outlets at Tejon. The majority of our capital investment is expected to remain concentrated at TRCC, where we are expanding the footprint of our commercial and industrial operations through vertical development, infrastructure improvements, and the construction of assets intended for lease.
Current report
We will also invest, as needed, across our real estate segments to secure land entitlement approvals, ensure access to adequate water supplies, and support general land development activities. In our farming segment, we plan to invest selectively in operational improvements and capacity enhancements when supported by market conditions and expected profitability.
Current report
During the first three months of 2025, our operations used $1,345,000, largely attributable to cash used to settle our current liabilities balance including liability classified stock compensation awards of $1,831,000.
Current report
During the first three months of 2024, our operations provided $777,000 primarily as a result of collection of accounts receivable, offset by increases in inventories and prepaid expenses, and our net loss from operations.
Removed paragraphs (28)
Previous report
•A joint venture with Rockefeller Development Group, or Rockefeller:
Previous report
Summary of Third Quarter 2024 Performance
Previous report
For the three months ended September 30, 2024, we had a net loss attributable to common stockholders of $1,836,000 compared to a net loss attributable to common stockholders of $341,000 for the three months ended September 30, 2023. The primary driver of this $1,495,000 increase in net loss was the performance of our farming segment, which experienced a $3,495,000 decrease in operating profit compared to the prior period. This decrease was primarily driven by the lack of pistachio crop yield in the current period, primarily due to insufficient chilling hours, coupled with 2024 being a down-bearing year following a substantial harvest last season. Historically, the pistachio harvest begins in the third quarter, but in the prior year period, the harvest was delayed due to unusual weather conditions. This delay impacted the timing of cost recognition, resulting in lower overall farming costs for the third quarter of 2023. Partially offsetting this decrease was a $2,168,000 increase in equity in earnings of unconsolidated joint ventures, primarily driven by the improved fuel margins of our TA/Petro joint venture. During the quarter, the joint venture experienced a 23.6% decrease in fuel cost of sales compared with the prior quarter, and this translates to an 86.8% improvement in fuel margins.
Previous report
For the nine months ended September 30, 2024, we had a net loss attributable to common stockholders of $1,793,000 compared to a net income attributable to common stockholders of $1,700,000 for the same period in 2023. The primary driver of this change was the $4,365,000 decrease in operating profits within the farming segment, which was primarily due to the lack of pistachio crop yield as stated above. Additionally, operating income for the mineral resources segment decreased by $1,995,000 due to limited opportunities to sell water. We also observed an increase in corporate expenses of $1,970,000 mainly due to higher stock compensation expenses, and higher professional service fees of $1,237,000 within the resort/residential segment. The above unfavorable variances were partially offset by improved equity of earnings of unconsolidated joint ventures of $2,995,000 associated with higher fuel margins of TA/Petro and an increase in tax benefits of $3,905,000 due to a net loss position in the year-to-date results, combined with a lower effective tax rate due to the Internal Revenue Code Section 162(m) adjustments.
Previous report
•Commercial/industrial real estate development segment revenues were $3,002,000 for the three months ended September 30, 2024, a decrease of $395,000, or 12%, from $3,397,000 for the three months ended September 30, 2023. The decrease was primarily attributable to the decreases in landscaping and other revenue of $162,000, TRCC management fees and reimbursements of $149,000 and Pastoria Energy Facility revenues of $104,000 during the period. The decrease in management fees is primarily attributed to the construction completion of the TRC-MRC 5 industrial building in 2023. The decrease in landscaping and other is primarily due to the increase in recoverable fees earned in 2023 due to the additional services provided to tenants triggered by unexpected weather damage that did not occur in 2024.
Previous report
•Commercial/industrial real estate development segment expenses were $2,088,000 for the three months ended September 30, 2024, a decrease of $49,000, or 2%, from $2,137,000 for the three months ended September 30, 2023. The decrease was primarily attributable to lower property tax expense partially offset by higher insurance cost over the comparative period.
Previous report
•Commercial/industrial real estate development segment revenues were $8,497,000 for the nine months ended September 30, 2024, a decrease of $209,000, or 2%, from $8,706,000 for the nine months ended September 30, 2023. The primary driver of this decrease was the decrease of $264,000 in revenue from Pastoria Energy Facility due to lower spark spread payments for the period. Additionally, TRCC management fees decreased by $74,000 or 9%, which were partially offset by an increase in TRCC leasing revenue of $69,000 or 5% due to rent escalations.
Previous report
•Commercial/industrial real estate development segment expenses were $6,005,000 for the nine months ended September 30, 2024, an increase of $488,000, or 9%, from $5,517,000 for the nine months ended September 30, 2023. The increase was primarily attributable to higher insurance cost of $294,000 and an increase in bad debt reserve of $134,000 due to a tenant in default.
Previous report
Resort/residential real estate development segment expenses were $328,000 for the three months ended September 30, 2024, a decrease of $39,000 from $367,000 for the three months ended September 30, 2023. This decrease was primarily attributable to a decrease of $71,000 in payroll expense recorded over the comparative period, partially offset by higher dues and membership fees of $11,000 and higher insurance cost of $11,000.
Previous report
Resort/residential real estate development segment expenses were $2,316,000 for the first nine months of 2024, an increase of $1,237,000, or 115%, from $1,079,000 for the first nine months of 2023. The increase was primarily attributable to an additional $1,250,000 of professional service fees and planning costs related to capital efforts tied to our master planned communities.
Previous report
•Mineral resources segment revenues were $7,687,000 for the first nine months of 2024, a decrease of $3,943,000, or 34%, from $11,630,000 for the first nine months of 2023. The reduction in revenues was primarily attributable to a decline in water sales revenue of $3,355,000 due to back-to-back above average rainfall years in California, which severely limited water sales opportunities. Reimbursable revenues also decreased $766,000 due to a mineral resources tax reassessment for this segment.
Previous report
•Mineral resources segment expenses were $5,043,000 for the first nine months of 2024, a decrease of $1,948,000, or 28%, when compared to the same period in 2023. The decrease was primarily due to lower water cost of sales recognized of $1,097,000, and a decrease in property tax expense of $738,000 when compared to the previous period.
Previous report
•Farming segment revenues were $3,242,000 for the three months ended September 30, 2024, an increase of $600,000, or 23%, from $2,642,000 during the same period in 2023. Almond sales revenue increased by $922,000, due to higher pricing and more crops available for sale. Comparatively, we sold 664,000 and 345,000 pounds of almonds during the three months ended September 30, 2024 and 2023, respectively. This increase was partially offset by a decrease in wine grape sales revenue during the same period due to lower production volume for our wine grapes harvested as of September 30, 2024.
Previous report
•Farming segment revenues were $4,249,000 for the first nine months of 2024, a decrease of $603,000, or 12%, from $4,852,000 during the same period in 2023. The decrease was primarily due to a decrease in wine grapes sales revenue of $620,000 due to lower units sold in the current year. Additionally, hay sales revenue decreased by $124,000, or 65%, due to lower crop sales volume.
Previous report
•Farming segment expenses were $9,406,000 for the first nine months of 2024, an increase of $3,762,000, or 67%, from $5,644,000 compared to the same period in 2023. Increases in the current period expenses were primarily due to the higher cost of pistachio crop over the comparative period associated with the late harvest in prior year mentioned above.
Previous report
Our almond, pistachio, and wine grape crop sales are highly seasonal, with most of our sales occurring during the third and fourth quarters. Each year, almonds and pistachios are sold at market prices, while grapes are sold to wineries at contracted prices. Our farming operations during 2024 continued to experience higher costs of production, such as fuel costs, fertilizer costs, pest control costs, and labor costs. The almond industry is estimating the 2024 almond crop at 2.6 billion pounds down from the previous report of over 3.0 billion pounds. This estimate along with a lower inventory carry forward has helped to improve pricing.
Previous report
Weather conditions can also impact the number of tree and vine dormant hours, which are integral to tree and vine growth. Farmers in California faced a warm winter negatively impacting dormant hours primarily related to pistachios, which can impact production within pistachios. In addition, late spring rains negatively impacted 2024 grape production as the rains occurred during the grape bloom. The timing of the rains also increased cultural costs within grapes to fight higher levels of mildew in the vineyards.
Previous report
•Ranch operations revenues were $3,518,000 for the first nine months of 2024, an increase of $134,000, or 4%, from $3,384,000 for the same period in 2023. The increase was primarily attributable to an increase in grazing lease revenue of $422,000, partially offset by a decrease in revenue recognized for game management due to lower filming location revenues.
Previous report
•Ranch operations expenses were $3,711,000 for the first nine months of 2024, a decrease of $153,000, or 4%, from $3,864,000 for the same period in 2023. This decrease was primarily attributable to a decrease in payroll and compensation expense of $156,000.
Previous report
Corporate general and administrative costs were $2,945,000 for the three months ended September 30, 2024, an increase of $630,000, or 27%, from $2,315,000 for the same period in 2023. The increase was primarily attributable to higher stock compensation expense of $922,000 over the comparative period, partially offset by lower bonus expense of $198,000.
Previous report
Corporate general and administrative costs were $8,794,000 for the first nine months of 2024, an increase of $1,970,000, or 29%, from $6,824,000 for the same period in 2023. The increase was primarily due to a $1,717,000 increase in stock compensation expense during the first nine months ended September 30, 2024.
Previous report
Total other income was $1,633,000 for the nine months ended September 30, 2024, a decrease of $414,000, from $2,047,000 for the same period in 2023. The decrease was primarily attributable to the $426,000 employee retention credit received during the first quarter of 2023, which did not reoccur in 2024.
Previous report
•Equity in earnings was $3,329,000 for the three months ended September 30, 2024, an increase of $2,168,000, from $1,161,000 during the same period in 2023. The increase was primarily attributable to an increase in equity in earnings recorded for the TA/Petro joint venture of $1,744,000 as a result of higher fuel margins. Equity in earnings for our various joint ventures with Majestic also increased due to higher rental rates or rental escalations.
Previous report
•Equity in earnings were $7,611,000 for the nine months ended September 30, 2024, an increase of $2,995,000, or 65%, from $4,616,000 during the same period in 2023. The primary driver of the increase was the increase in equity in earnings recorded for Petro Travel Plaza Holdings, LLC as a result of higher fuel margins. Equity in earnings for our TRC-MRC LLC joint ventures increased due to higher rental rates or rental escalations, except for a decrease in TRC-MRC 1 LLC equity in earnings due to an increase of repair costs from storm damage over the prior year period, partially offset by related insurance reimbursements, and the new revenue stream generated by the completed industrial building of the TRC-MRC5 joint venture. Additionally, equity in loss from TRCC/Rock Outlet Center joint venture decreased by $126,000 compared to the prior period, and the Outlet Center was over 90% occupied as of September 30, 2024.
Previous report
To enhance shareholder value over the long-term, we expect to continue to make investments in our real estate segments to secure land entitlement approvals, build infrastructure for our developments, invest in to be leased assets, provide adequate water supplies, and provide funds for general land development activities. Within our farming segment, we intend to make investments, as needed, to improve efficiency and add capacity to its operations, when it is profitable to do so.
Previous report
During the first nine months of 2024, our operations provided $1,045,000 primarily related to cash generated by a change in our operating assets. Collection of accounts receivables provided $5,200,000 of cash, which was partially offset by cash used in growing our crop inventories of $3,365,000.
Previous report
During the first nine months of 2023, our operations provided $14,750,000 primarily as a result of distributions of earnings from unconsolidated joint ventures.
Previous report
1 - The increase represents our contractual commitments related to our multifamily development.
Reworded paragraphs (52)
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements, including without limitation statements regarding strategic alliances, the almond, pistachio and grape industries, the future plantings of permanent crops, future yields, prices and water availability for the Company's crops and real estate operations, future prices, production and demand for oil and other minerals, future development of the Company's property, future revenue and income of its jointly-owned travel plaza and other joint venture operations, the adequacy of future cash flows to fund our operations, the adequacy of current assets and contracts to meet our water and other commitments, market value risks associated with investment and risk management activities and with respect to inventory and accounts receivable, our outstanding indebtedness, ongoing negotiations and other future events and conditions. In some cases, these statements are identifiable through use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “will,” “should,” “would,” “likely,” and similar expressions such as “in the process.” In addition, any statements that refer to projections of our future financial performance, our anticipated growth, and trends in our business and other characterizations of future events or circumstances are forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. These forward-looking statements are not a guarantee of future performance, are subject to assumptions and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance, or achievement implied by such forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, weather, market, geopolitical and economic forces, availability of financing for land development activities, and competition and success in obtaining various governmental approvals and entitlements for land development activities. No assurance can be given that the actual future results will not differ materially from the forward-looking statements that we make for several reasons, including those described above and in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements, including without limitation statements regarding strategic alliances, the almond, pistachio, olives and grape industries, the future plantings of permanent crops, future yields, prices and water availability for the Company's crops and real estate operations, future prices, production and demand for oil and other minerals, future development of the Company's property, future revenue and income of its jointly-owned travel plaza and other joint venture operations, the adequacy of future cash flows to fund our operations, future revenue and income residential leasing, the adequacy of current assets and contracts to meet our water and other commitments, market value risks associated with investment and risk management activities and with respect to inventory and accounts receivable, our outstanding indebtedness, ongoing negotiations and other future events and conditions. In some cases, these statements are identifiable through use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “will,” “should,” “would,” “likely,” and similar expressions such as “in the process” and “well-positioned.” In addition, any statements that refer to projections of our future financial performance, our anticipated growth, and trends in our business and other characterizations of future events or circumstances are forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. These forward-looking statements are not a guarantee of future performance, are subject to assumptions and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance, or achievement implied by such forward-looking statements. These risks, uncertainties and important factors include, but are not limited to, weather, market, geopolitical and economic forces, availability of financing for land development activities, and competition and success in obtaining various governmental approvals and entitlements for land development activities. No assurance can be given that the actual future results will not differ materially from the forward-looking statements that we make for several reasons, including those described above and in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K.
Previous wording
We are a diversified real estate development and agribusiness company committed to responsibly using our land and resources to meet the housing, employment, and lifestyle needs of Californians and to create value for our shareholders. In support of these objectives, we have been investing in land planning and entitlement activities for new commercial/industrial and resort/residential land developments and in infrastructure improvements within our active industrial development. Our prime asset is approximately 270,000 acres of contiguous, largely undeveloped land that, at its most southerly border, is 60 miles north of Los Angeles and, at its most northerly border, is 15 miles east of Bakersfield.
Current wording
We are a diversified real estate development and agribusiness company committed to creating value for our shareholders by responsibly using our land and resources to meet the housing, employment, and lifestyle needs of Californians. In support of these objectives, we have been investing in land planning and entitlement activities for new commercial/industrial and resort/residential land developments and in infrastructure improvements within our active industrial development. Our prime asset is approximately 270,000 acres of contiguous, largely undeveloped land that, at its most southerly border, is 60 miles north of Los Angeles and, at its most northerly border, is 15 miles east of Bakersfield.
Previous wording
Our primary business objective is to maximize long-term shareholder value through the improvement and monetization of our land-based assets. A key element of our strategy is to entitle and then develop large-scale mixed-use master planned residential and commercial/industrial real estate development projects to serve the growing populations of Southern and Central California. An active example of this strategy is the TRCC mixed-use development, which was entitled and prevailed in litigation in 2007.
Current wording
Our primary business objective is to maximize long-term shareholder value through the strategic improvement and monetization of our land-based assets. A key element of our strategy is the entitlement and development of large-scale mixed-use master planned residential and commercial/industrial real estate projects that address the evolving housing and infrastructure needs of Southern and Central California. Our long-term development track record, combined with deliberate capital allocation and stakeholder engagement, positions us to unlock the full potential of these unique assets. An active example of this strategy is the TRCC master planned community, which was entitled and prevailed in litigation in 2007, the project has been under continuous development ever since.
Previous wording
Our mixed-use master planned residential developments include up to 35,278 housing units, and more than 35 million square feet of commercial space. We have obtained entitlements on MV and prevailed in litigation in 2012, and received the first approved final map for the project consisting of 401 residential lots and parcels for hospitality, amenities, and public uses. Grapevine at Tejon Ranch, or Grapevine, was reapproved unanimously by the Kern County Board of Supervisors in 2019 and prevailed in litigation in 2021. Centennial at Tejon Ranch, or Centennial, had entitlements approved in 2019 by the Los Angeles County Board of Supervisors. These approvals were litigated in two lawsuits filed in Los Angeles County Superior Court in May 2019 and we have since worked on defending and addressing the ongoing litigation, including considering all options to address the Superior Court’s January 2022 decision and the Superior Court’s March 22, 2023 final judgment. On May 26, 2023, we filed a Notice of Appeal, thereby appealing the Superior Court’s decision to the Second District of the California Court of Appeal. On June 27, 2023, CBD/CNPS cross-appealed the Superior Court’s ruling. Briefing at the Court of Appeal is complete and the Company is awaiting a hearing date. During the appeals process the Superior Court’s order of the rescission of project approvals has been placed on hold. See Note 11 (Commitments and Contingencies) of the Notes to Unaudited Consolidated Financial Statements for additional information regarding the Centennial litigation.
Current wording
Our future master planned communities include up to 35,278 housing units, and more than 35 million square feet of commercial space in aggregate. Two of our master planned communities have already obtained their entitlements and have successfully defended litigation. First, we have obtained entitlements on MV and prevailed in litigation in 2012, and subsequently received the first approved final map for the project consisting of 401 residential lots and parcels for hospitality, amenities, and public uses. Second, Grapevine at Tejon Ranch, or Grapevine, was reapproved unanimously by the Kern County Board of Supervisors in 2019 and prevailed in litigation in 2021. Centennial at Tejon Ranch, or Centennial, had entitlements approved in 2019 by the Los Angeles County Board of Supervisors. These approvals were litigated in two lawsuits filed in Los Angeles County Superior Court in May 2019 and we have since worked on defending and addressing the ongoing litigation, including considering all options to address the Superior Court’s January 2022 decision and the Superior Court’s March 22, 2023 final judgment. On May 26, 2023, we filed a Notice of Appeal, thereby appealing the Superior Court’s decision to the Second District of the California Court of Appeal. On June 27, 2023, CBD/CNPS cross-appealed the Superior Court’s ruling. The Court of Appeal held a hearing on April 3, 2025 for this matter, and it is anticipated that the Court of Appeal should deliver a written decision on or before July 2, 2025. During the appeals process the Superior Court’s order of the rescission of project approvals has been placed on hold. See Note 11 (Commitments and Contingencies) of the Notes to Unaudited Consolidated Financial Statements for additional information regarding the Centennial litigation.
Previous wording
We are currently executing on value creation as we are engaged in construction, commercial sales, and leasing at our fully operational mixed-use development, TRCC. During the first quarter of 2024, we began construction of the first phase of a multi-family community, Terra Vista at Tejon, within TRCC. The development is located on a 22-acre site located immediately north of the Outlets at Tejon. In this first phase, we are developing 228 units of multi-family residences, in seven apartment buildings, as well as a clubhouse with pool and fitness facilities. The Conditional Use Permit approved by Kern County Board of Supervisors authorized up to a maximum of 495 multi-family residences to be constructed. Our goal is to deliver the first phase on budget and on time, and we are currently meeting both objectives. All of these efforts are supported by diverse revenue streams generated from other operations, including: farming, mineral resources, ranch operations, and our various joint ventures.
Current wording
All of these efforts are supported by diverse revenue streams generated from other operations, including: farming, mineral resources, ranch operations, and our various joint ventures.
Previous wording
At the heart of the commercial/industrial real estate development segment is TRCC, a 20 million square foot mixed-use development on Interstate 5 just north of the Los Angeles basin. Over eight million square feet of industrial, commercial and retail space has already been developed or is under development, including distribution centers for IKEA, Caterpillar, Nestlé, Famous Footwear, L'Oreal, Camping World, Sunrise Brands, Dollar General and RectorSeal. TRCC sits on both sides of Interstate 5, giving distributors immediate access to the west coast’s principal north-south goods movement corridor.
Current wording
At the heart of the commercial/industrial real estate development segment is TRCC, a 20 million square foot mixed-use development on Interstate 5 just north of the Los Angeles basin. TRCC continues to serve as a model for long-term value creation, having generated more than $110 million in cumulative cash flow from commercial and industrial development since 2000. With the upcoming launch of Terra Vista at Tejon, TRCC is now evolving into a vibrant residential and employment hub, enhancing the interconnectivity of our mixed-use master planned community strategy. Over eight million square feet of industrial, commercial and retail space has already been developed or is under development, including distribution centers for IKEA, Caterpillar, Nestlé, Famous Footwear, L'Oreal, Camping World, Sunrise Brands, Dollar General and RectorSeal. TRCC sits on both sides of Interstate 5, giving distributors immediate access to the West Coast’s principal north-south goods movement corridor.
Previous wording
◦TRCC/Rock Outlet Center LLC operates the Outlets at Tejon, a net leasable 326,000 square foot shopping experience in TRCC-East.
Current wording
•A joint venture, TRCC/Rock Outlet Center LLC, with Rockefeller Group Development Corporation, or Rockefeller which operates the Outlets at Tejon, a net leasable 326,000 square foot shopping experience in TRCC-East.
Previous wording
•On October 4, 2024, we entered into a joint venture with Dedeaux Properties to develop, manage, and operate an industrial building of 510,500 square feet of space.
Current wording
•On October 4, 2024, we entered into a joint venture with Dedeaux Properties to develop, manage, and operate an industrial building of 510,385 square feet of space.
Previous wording
The resort/residential real estate development segment is actively involved in the land entitlement and development process internally and through a joint venture. Our active developments within this segment are MV, Centennial, and Grapevine, with Grapevine North representing a fourth opportunity in this segment.
Current wording
The resort/residential real estate development segment is actively involved in the land entitlement and development process internally and through a joint venture. Our active developments within this segment are MV, Centennial, and Grapevine, with Grapevine North representing a fourth opportunity in this segment. Our master planned communities represent long-term value drivers for the Company. By leveraging a strong track record of obtaining and defending entitlements in California’s complex regulatory environment, we are building the foundation for future recurring revenue generation while preserving optionality across our land portfolio.
Previous wording
•MV encompasses a total of 26,417 acres, of which 5,082 acres is expected to be used for a mixed-use development that will include housing, retail, and commercial components. MV is entitled for 3,450 homes, 160,000 square feet of commercial development, 750 hotel keys, and more than 21,335 acres of open space. The first final map for the project consisting of 401 residential lots and parcels for hospitality, amenities, and public uses was approved by Kern County in December 2021;
Current wording
•MV encompasses a total of 26,417 acres, of which 5,082 acres are approved to be used for a master planned community development that will include housing, retail, and commercial components. MV is entitled for 3,450 homes, 160,000 square feet of commercial development, 750 hotel keys, and more than 21,335 acres of open space;
Previous wording
•The Centennial development is a mixed-use master planned community development encompassing 12,323 acres of our land within Los Angeles County. Upon completion of Centennial, it is estimated that the community will include approximately 19,333 homes and 10.1 million square feet of commercial development, including nearly 3,500 affordable units. See Note 11 (Commitments and Contingencies) of the Notes to Unaudited Consolidated Financial Statements for additional information related to current litigation;
Current wording
•The Centennial development is a master planned community development encompassing 12,323 acres of our land within Los Angeles County. Upon completion of Centennial, it is estimated that the community will include approximately 19,333 homes and 10.1 million square feet of commercial development, including nearly 3,500 affordable units. See Note 11 (Commitments and Contingencies) of the Notes to Unaudited Consolidated Financial Statements for additional information related to current litigation;
Previous wording
•Grapevine is an 8,010-acre development area located on the San Joaquin Valley floor area of our lands, adjacent to TRCC. Upon completion of Grapevine, the community will include 12,000 homes, 5.1 million square feet of commercial development, and more than 3,367 acres of open space and parks; and
Current wording
•Grapevine is an 8,010-acre development area located on the San Joaquin Valley floor area of our lands, adjacent to TRCC. Upon completion of Grapevine, this master planned community is expected to include 12,000 homes, 5.1 million square feet of commercial development, and more than 3,367 acres of open space and parks; and
Previous wording
•Immediately northeast of Grapevine is Grapevine North, a 7,655-acre development area, which is currently used for agricultural purposes. Identified as a development area in the RWA, Grapevine North presents a significant opportunity for future development. Grapevine North may feature mixed-use community development similar to Grapevine at Tejon Ranch, or other development uses as appropriate based upon market conditions at the time.
Current wording
•Immediately northeast of Grapevine is Grapevine North, a 7,655-acre development area, which is currently used for agricultural purposes. Identified as a development area in the RWA, Grapevine North presents a significant opportunity for future development. Grapevine North may feature mixed-use community development similar to Grapevine at Tejon Ranch, or other development uses as appropriate based upon market conditions at the time. The Company is not currently pursuing entitlements for Grapevine North.
Previous wording
The farming segment produces revenues from the sale of wine grapes, almonds, and pistachios.
Current wording
The farming segment produces revenues from the sale of wine grapes, almonds, and pistachios. As part of our crop segmentation strategy within the farming division, we have initiated the planting of an olive orchard to diversify our commodity portfolio and better position the Company for shifts in market conditions.
Previous wording
During the nine months ended September 30, 2024, our critical accounting policies have not changed since the filing of our Annual Report on Form 10-K for the year ended December 31, 2023. Please refer to that filing for a description of our critical accounting policies. Please also refer to Note 1 (Basis of Presentation) in the Notes to Unaudited Consolidated Financial Statements in this report for a discussion regarding newly adopted accounting principles.
Current wording
During the three months ended March 31, 2025, our critical accounting policies have not changed since the filing of our Annual Report on Form 10-K for the year ended December 31, 2024. Please refer to that filing for a description of our critical accounting policies. Please also refer to Note 1 (Basis of Presentation) in the Notes to Unaudited Consolidated Financial Statements in this report for a discussion regarding newly adopted accounting principles.
Previous wording
The logistics operators currently located within TRCC have demonstrated success in serving all of California and the western region of the United States, and we showcase their success in our marketing efforts. We expect to continue to focus our marketing strategy for TRCC on the significant labor and logistical benefits of our site, the pro-business approach of Kern County, and the demonstrated success of the current tenants and owners within our development. Our location fits within the logistics model that many companies are using, which favors large, centralized distribution facilities which have been strategically located to maximize the balance of inbound and outbound efficiencies, rather than many decentralized smaller distribution centers. The world-class logistics operators located within TRCC have demonstrated success through utilization of this model. With access to markets of over 40 million people for next-day delivery service, they are also demonstrating success with e-commerce fulfillment.
Current wording
The logistics operators currently located at TRCC have proven effective in serving customers throughout California and the broader western United States, and their success is prominently featured in our marketing efforts. We plan to continue focusing our marketing strategy for TRCC on the site's strategic labor and logistics advantages, the pro-business environment of Kern County, and the demonstrated success of existing tenants and property owners within the development. Our location fits within the logistics model that many companies are using, which favors large, centralized distribution facilities which have been strategically located to maximize the balance of inbound and outbound efficiencies, rather than many decentralized smaller distribution centers. The world-class logistics operators located within TRCC have demonstrated success through utilization of this model. With access to markets of over 40 million people for next-day delivery service, they are also demonstrating success with e-commerce fulfillment.
Previous wording
We believe the FTZ and AKIP, along with our ability to provide fully entitled, shovel-ready land parcels to support buildings of any size, including buildings one million square feet or larger, can provide us with a potential marketing advantage. Our marketing efforts target the Inland Empire region of Southern California, the Santa Clarita Valley of northern Los Angeles County, the northern part of the San Fernando Valley (due to the limited availability of new product and high real estate costs in these locations), and the San Joaquin Valley of California. We continue to analyze the market and evaluate expansions of industrial buildings for lease either on our own or in partnerships, as we have done with the buildings developed within our joint ventures.
Current wording
We believe the FTZ and AKIP, along with our ability to provide fully entitled, shovel-ready land parcels to support buildings of any size, including buildings one million square feet or larger, provide us with a marketing advantage. Our marketing efforts target the Inland Empire region of Southern California, the Santa Clarita Valley of northern Los Angeles County, the northern part of the San Fernando Valley (due to the limited availability of new product and high real estate costs in these locations), and the San Joaquin Valley of California. We continue to analyze the market and evaluate expansions of industrial buildings for lease either on our own or in partnerships, as we have done with the buildings developed within our joint ventures.
Previous wording
During the quarter ended September 30, 2024, vacancy rates in the Inland Empire continued to climb but at a much slower pace to 6.7% as the construction pipeline posted its lowest quarterly total in eight years. Average asking rents declined for the fifth consecutive quarter. The San Fernando Valley and Ventura County industrial markets continue to experience tight conditions, with historically low vacancy and availability rates. Vacancy increased marginally to 1.9% in San Fernando Valley and remained unchanged at 2.2% in Ventura County, while overall net absorption was negative in both markets. Average asking rent experienced a slight quarter-over-quarter decline in the San Fernando Valley, dropping by $0.06 to $1.62, and by $0.09 in Ventura County to $1.17. See below for the vacancy rates and average asking rent of Inland Empire, San Fernando Valley and Ventura County.
Current wording
During the quarter ended March 31, 2025, vacancy rates in the Inland Empire declined by 50 basis points to 6.3% as the construction pipeline remains relatively slow. Average asking rents continued to decline for the seventh consecutive quarter to $1.10. The San Fernando Valley and Ventura County industrial markets ended an eight-quarter streak of rising vacancy. Vacancy decreased by 30 basis points to 2.2% in San Fernando Valley and by 10 basis points to 2.1% in Ventura County, with both regions recording positive net absorption. Average asking rent experienced a slight quarter-over-quarter decline in the San Fernando Valley, dropping $0.01 to $1.53, while Ventura posted an increase to $1.24. See below for the vacancy rates and average asking rent of Inland Empire, San Fernando Valley and Ventura County.
Previous wording
The actual timing and completion of development is difficult to predict, due to the uncertainties of the market. Infrastructure development and marketing activities and costs could continue to increase over several years, as we develop our land holdings. We will also continue to evaluate land resources to determine the highest and best uses for our land holdings. Future land sales are dependent on market circumstances and specific opportunities. Our goal in the future is to increase land value and create future revenue growth through planning and development of commercial and industrial properties.
Current wording
The actual timing and completion of development is difficult to predict, due to the uncertainties of the market. Infrastructure development and marketing activities and costs could continue to increase over several years, as we develop our land holdings. We will also continue to evaluate land resources to determine the highest and best uses for our land holdings. Future land sales are dependent on market circumstances and specific opportunities. Our goal in the future is to increase land value and create future revenue growth through planning and development of commercial and industrial properties. Industrial land prices have increased at TRCC since 2000 from $0.57 per square foot to $9.00 per square foot which is a 1,479% increase, demonstrating the consistent increase in demand and maturation of TRCC. Industrial rents have increased 236% over the past eight-year period starting at $0.25 per square foot in 2017.
Previous wording
We are in the preliminary stages of property development for this segment; hence, no revenues or profits are attributed to this segment.
Current wording
We are in the preliminary stages of property development; hence, no revenues or profits are attributed to this segment.
Previous wording
Our long-term business plan of developing the communities of MV, Centennial, and Grapevine remains unchanged. Long-term macro fundamentals, primarily California's large population and household formation, will support housing demand in our region. California also has a significant documented housing shortage, which we believe our communities will help ease. A majority of the expenditures and capital investment to be incurred within our resort/residential real estate segment are expected to continue to focus on the mixed-use master planned communities of Centennial, Grapevine, and Mountain Village.
Current wording
Our long-term business strategy to develop the master-planned communities of MV, Centennial, and Grapevine remains unchanged. We believe that the long-term macroeconomic fundamentals, particularly California’s large population base and continued household formation as well as the demographic migration to the suburban and exurban periphery of Los Angeles and Kern Counties, will support sustained housing demand in our region. Additionally, California’s well-documented housing shortage reinforces the need for thoughtfully planned residential development, and we believe our communities are well-positioned to help address this shortfall. Accordingly, the majority of expenditures and capital investments within our resort/residential real estate segment are expected to remain focused on these three communities.
Previous wording
As we move forward with our master planned communities, we expect to explore funding opportunities for the future development of our projects. Such funding opportunities could come from a variety of sources, such as joint ventures with financial partners, debt financing, or our issuance of additional common stock.
Current wording
As we move forward with our master planned communities, we expect to explore funding opportunities for the future development of our projects. Such funding opportunities could come from a variety of sources, such as joint ventures with financial partners, debt financing, and/or our issuance of additional common stock.
Previous wording
•Mineral resources segment revenues were $3,166,000 for the three months ended September 30, 2024, an increase of $48,000, or 2%, from $3,118,000 for the three months ended September 30, 2023. The increase in revenues was primarily due to an increase in water sales revenue of $84,000 and an increase in cement royalties of $56,000. The increases were partially offset by a decrease of $58,000 in oil and gas revenue due to lower production volume.
Current wording
•Mineral resources segment revenues were $2,595,000 for the three months ended March 31, 2025, representing an increase of $106,000, or 4%, compared to $2,489,000 for the three months ended March 31, 2024. The increase was primarily driven by a $105,000 increase in water sales revenue, attributed to a higher price per acre-foot, and a $78,000 increase in reimbursable and other revenues. The increases were partially offset by an $87,000 decline in cement royalties, attributed to lower production volumes during the quarter.
Previous wording
•Mineral resources segment expenses were $1,812,000 for the three months ended September 30, 2024, a decrease of $188,000, or 9%, from $2,000,000 for the three months ended September 30, 2023. The decrease was primarily associated with lower property tax expense of $495,000, partially offset by higher water cost of sales of $297,000 recognized during the quarter.
Current wording
•Mineral resources segment expenses were $2,085,000 for the three months ended March 31, 2025, a decrease of $31,000, or 1%, from $2,116,000 for the three months ended March 31, 2024. The decrease was primarily associated with lower general and administrative expenses, namely professional services fees, partially offset by higher water cost of sales of $47,000 recognized during the quarter.
Previous wording
As anticipated changes arise in the future related to groundwater management in California, such as limits on groundwater pumping, we believe our water assets, including water banking operations, ground water recharge programs, and access to water contracts like those we have purchased in the past, will become even more important and valuable in servicing our projects and providing opportunities for water sales to third-parties.
Current wording
As anticipated regulatory changes related to groundwater management in California emerge, such as potential limits on groundwater pumping, we believe our water assets will become increasingly important and valuable. These assets include our water banking operations, groundwater recharge programs, and access to water supply contracts, such as those we have acquired in prior periods. We expect these resources will continue to play a critical role in supporting our development projects and may also present opportunities for water sales to third parties.
Previous wording
•Farming segment expenses were $6,252,000 for the three months ended September 30, 2024, an increase of $4,095,000, or 190%, from $2,157,000 during the same period in 2023. This increase was primarily due to higher almond cost of sales recognized in the period associated with higher crop sales volume. Additionally, pistachio crop cost of sales was $2,622,000 higher over the comparative period due to the timing of the harvest of the crop. The late pistachio harvest in the 2023 period delayed the timing of cost recognition, which historically occurred in the third quarter, while in the current year period, all cultural costs related to pistachio crop were written off due to the lack of pistachio yield. In 2024, the pistachio trees did not yield a crop, largely due to the low chilling hours and the off-cycle nature of this year, following a significant crop last season. An insurance claim for this crop has been filed.
Current wording
•Farming segment expenses were $2,548,000 for the three months ended March 31, 2025, an increase of $481,000, or 23%, from $2,067,000 during the same period in 2024. This increase was primarily due to an increase of $351,000 in almond cost of sales recognized in the period associated with higher crop sales volume. Additionally, water holding costs increased by $88,000.
Previous wording
•Ranch operations revenues were $1,446,000 for the three months ended September 30, 2024, an increase of $394,000, or 37%, from $1,052,000 for the same period in 2023. The increase was attributable to an increase in grazing lease revenues of $262,000 and an increase in game management and other revenue of $132,000, primarily related to higher filming location revenues.
Current wording
•Ranch operations revenues were $1,304,000 for the three months ended March 31, 2025, an increase of $197,000, or 18%, from $1,107,000 for the same period in 2024. The increase was attributable to an increase in game management and other revenue of $166,000, mainly attributable to improved revenue of guided hunts as well as higher revenue recognized from our High Desert Hunt Club, and an increase in grazing lease revenues of $31,000 due to improved pasture levels.
Previous wording
•Ranch operations expenses were $1,223,000 for the three months ended September 30, 2024, an increase of $27,000, or 2%, from $1,196,000 for the same period in 2023.
Current wording
•Ranch operations expenses were $1,273,000 for the three months ended March 31, 2025, an increase of $46,000, or 4%, from $1,227,000 for the same period in 2024.
Previous wording
Total other income was $459,000 for the three months ended September 30, 2024, a decrease of $211,000 from $670,000 for the same period in 2023, primarily due to lower investment income as a result of a reduction in marketable securities.
Current wording
Total other income was $270,000 for the three months ended March 31, 2025, a decrease of $345,000 from $615,000 for the same period in 2024, primarily due to lower investment income as a result of a reduction in marketable securities.
Previous wording
For the nine months ended September 30, 2024, we had an income tax benefit of $286,000 compared to income tax expense of $3,619,000 for the nine months ended September 30, 2023. The effective tax rates approximated 14% and 68% for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, the Company had income taxes receivable of $1,814,000. We classify interest and penalties incurred on tax payments as income tax expenses. Our effective tax rates differ from statutory rates primarily because of permanent differences related to Internal Revenue Code Section 162(m). The Internal Revenue Code Section 162(m) compensation deduction limitations occurred due to changes in tax law arising from the 2017 Tax Cuts and Jobs Act.
Current wording
For the three months ended March 31, 2025, we had an income tax benefit of $1,272,000 compared to $942,000 for the three months ended March 31, 2024. The effective tax rates approximated 46% and 51% for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the Company had income taxes receivable of $2,520,000. We classify interest and penalties incurred on tax payments as income tax expenses. Our effective tax rates differ from statutory rates primarily because of permanent differences related to Internal Revenue Code Section 162(m). The Internal Revenue Code Section 162(m) compensation deduction limitations occurred due to changes in tax law arising from the 2017 Tax Cuts and Jobs Act.
Previous wording
Our cash, cash equivalents and marketable securities totaled approximately $41,261,000 as of September 30, 2024, a decrease of $23,202,000 from $64,463,000 as of December 31, 2023.
Current wording
Our cash, cash equivalents and marketable securities totaled approximately $32,931,000 as of March 31, 2025, a decrease of $20,777,000 from $53,708,000 as of December 31, 2024, due primarily to funding of construction on the Terra Vista at Tejon multi-family apartment community.
Previous wording
The following table shows our cash flow activities for the nine months ended September 30,
Current wording
The following table shows our cash flow activities for the three months ended March 31,
Previous wording
During the first nine months of 2024, investing activities used $17,377,000. The increase in investing activities is related to the construction of the Terra Vistaand TRCC infrastructure, and we expect the costs to continue into 2025 for the first phase of this multi-family project.
Current wording
During the first three months of 2025, investing activities used $32,650,000. The increase in investing activities is primarily related to the construction of Terra Vista at Tejon, and we expect the costs to continue throughout 2025 for the first phase of this multi-family project.
Previous wording
During the first nine months of 2023, investing activities used $6,805,000. We made capital expenditures, inclusive of capitalized interest and payroll (exclusive of stock compensation), of $13,513,000, which includes predevelopment activities for our master planned communities; $1,444,000 consisting of permitting efforts for MV; $907,000 consisting of permitting efforts for Grapevine; and costs related to litigation defense for Centennial of $2,123,000. At TRCC, we spent $4,492,000 on infrastructure improvements at TRCC-East. Within our farming segment, we spent $3,983,000, which includes cultural costs for orchards currently classified as under development and replacing machinery and equipment. Additionally, we used $6,070,000 to acquire water assets. We had marketable securities of $91,831,000 that matured, and we reinvested $87,272,000. We contributed $3,750,000 into our unconsolidated joint ventures during the period. Lastly, we received proceeds of $10,645,200, and $1,324,000 from joint venture distributions, and water sales, respectively.
Current wording
We made capital expenditures, inclusive of capitalized interest and payroll (exclusive of stock compensation), of $17,544,000 for real estate development. At TRCC, we spent $11,586,000 of construction cost on Terra Visa at Tejon and $1,957,000 on infrastructure improvements at TRCC-East. We also spent $543,000 and $346,000 on permitting efforts for MV and Grapevine, respectively, and $775,000 on litigation defense for Centennial. Within our farming segment, we spent $2,030,000, which included cultural costs for orchards currently classified as under development and replacement of machinery and equipment. Additionally, we used $9,018,000 to acquire water assets. We had marketable securities of $15,280,000 that matured, and we reinvested $21,410,000. Lastly, we received proceeds of $142,000 from joint venture distributions.
Previous wording
We made capital expenditures, inclusive of capitalized interest and payroll (exclusive of stock compensation), of $40,995,000, which included predevelopment activities for our master planned communities; $2,088,000 consisting of permitting efforts for MV; $1,014,000 consisting of permitting efforts for Grapevine; and costs related to litigation defense for Centennial of $3,110,000. At TRCC, we spent $16,750,000 ofconstruction cost on Terra Visa at Tejon and $12,341,000 on infrastructure improvements at TRCC-East. Within our farming segment, we spent $4,531,000, which included cultural costs for orchards currently classified as under development and replacement of machinery and equipment. Additionally, we used $4,616,000 to acquire water assets. We had marketable securities of $85,769,000 that matured, and we reinvested $66,640,000. Lastly, we received proceeds of $5,783,000 from joint venture distributions and reimbursements of $3,309,000 from a Community Facilities District.
Current wording
During the first three months of 2024, investing activities provided $3,074,000. We made capital expenditures, inclusive of capitalized interest and payroll (exclusive of stock compensation), of $8,112,000, which includes predevelopment activities for our master planned communities, $599,000 consisting of permitting efforts for MV, $353,000 consisting of permitting efforts for Grapevine, and costs related to litigation defense for Centennial of $994,000. At TRCC, we spent $2,446,000 ofconstruction cost on Terra Visa at Tejon and $1,573,000 on infrastructure improvements at TRCC-East. Within our farming segment, we spent $1,846,000, which includes cultural costs for orchards currently classified as under development and replacement of machinery and equipment. Additionally, we used $5,248,000 to acquire water assets. We had marketable securities of $46,239,000 that matured, and we reinvested $38,614,000. Lastly, we received proceeds of $5,500,000 from joint venture distributions.
Previous wording
Our estimated capital investment, inclusive of capitalized interest and payroll, for the remainder of 2024 is primarily related to our real estate projects. These estimated investments include approximately $11,488,000 of construction costs for the Terra Vista at Tejon multi-family project phase 1 development and $4,016,000 of infrastructure development at TRCC-East to support the continued commercial retail and industrial development, water treatment system improvements, and expansion of the wastewater treatment plant for future anticipated absorption. We also expect to invest up to $2,307,000 for land planning, litigation/appeals, federal and state agency permitting activities, and development activities at MV, Centennial, and Grapevine during the remainder of 2024.
Current wording
Our estimated capital investment, inclusive of capitalized interest and payroll, for the remainder of 2025 is primarily related to our real estate projects. These estimated investments include approximately $18,071,000 of construction costs for the Terra Vista at Tejon multi-family project phase 1 development and $8,706,000 of infrastructure development at TRCC-East to support the continued commercial retail and industrial development, water treatment system improvements, and expansion of the wastewater treatment plant for future anticipated absorption. We also expect to invest up to $6,927,000 for land planning, litigation/appeals, federal and state agency permitting activities, and development activities at MV, Centennial, and Grapevine during the remainder of 2025.
Previous wording
We capitalize interest cost as a cost of the project only during the period for which activities necessary to prepare an asset for its intended use are ongoing, provided expenditures for the asset have been made and interest cost has been incurred. Capitalized interest for the nine months ended September 30, 2024 and 2023, was $3,175,000 and $1,828,000, respectively, and is classified within real estate development. We also capitalized payroll costs related to development, pre-construction, and construction projects, which aggregated $2,179,000 and $1,744,000 for the nine months ended September 30, 2024 and 2023, respectively. Expenditures for repairs and maintenance are expensed as incurred.
Current wording
We capitalize interest cost as a cost of the project only during the period for which activities necessary to prepare an asset for its intended use are ongoing, provided expenditures for the asset have been made and interest cost has been incurred. Capitalized interest for the three months ended March 31, 2025 and 2024, was $594,000 and $968,000, respectively, and is classified within real estate development. We also capitalized payroll costs related to development, pre-construction, and construction projects, which aggregated $700,000 and $547,000 for the three months ended March 31, 2025 and 2024, respectively. Expenditures for repairs and maintenance are expensed as incurred.
Previous wording
During the first nine months of 2024, financing activities provided $11,794,000, which was attributable to borrowings on the line of credit of $12,000,000 to fund construction projects and other ongoing development such as Terra Vista and TRCC infrastructure, partially offset by the tax payments on vested share grants of $206,000.
Current wording
During the first three months of 2025, financing activities provided $7,010,000, which was attributable to borrowings on the line of credit of $7,500,000 to fund construction projects and other ongoing development such as Terra Vista and TRCC infrastructure, partially offset by the tax payments on vested share grants of $490,000.
Previous wording
During the first nine months of 2023, financing activities used $3,915,000, which was attributable to long-term debt service of $1,321,000, and tax payments on vested share grants of $2,594,000.
Current wording
During the first three months of 2024, financing activities used $206,000, which was attributable to the tax payments on vested share grants.
Previous wording
It is difficult to accurately predict cash flows due to the nature of our businesses and fluctuating economic conditions. Our earnings and cash flows will be affected from period to period by the commodity nature of our farming and mineral operations, the timing of sales and leases of property within our development projects, and the beginning of development within our residential projects. The timing of sales and leases within our development projects is difficult to predict due to the time necessary to complete the development process and negotiate sales or lease contracts. Often, the timing aspect of land development can lead to particular years or periods having more or less earnings than comparable periods. Based on our experience, we believe we will have adequate cash flows, cash balances, and availability on our line of credit over the next twelve months to fund internal operations. As we move forward with the completion of the litigation, permitting and engineering design for our master planned communities and prepare to move into the development stage, we may need to secure additional funding through either the issuance of equity and/or by securing other forms of financing such as joint venture equity and debt financing.
Current wording
It is difficult to accurately predict cash flows due to the nature of our businesses and fluctuating economic conditions. Our earnings and cash flows will be affected from period to period by the commodity nature of our farming and mineral operations, the timing of sales and leases of property within our development projects, and the beginning of development within our residential projects. The timing of sales and leases within our development projects is difficult to predict due to the time necessary to complete the development process and negotiate sales or lease contracts. Often, the timing aspect of land development can lead to particular years or periods having more or less earnings than comparable periods. Based on our experience, we believe we will have adequate cash flows, cash balances, and availability on our line of credit over the next twelve months to fund internal operations. As we move forward with the completion of the litigation, permitting and engineering design for our master planned communities and prepare to move into the development stage, we may need to secure additional funding in the long-term through either the issuance of equity and/or by securing other forms of financing such as joint venture equity and debt financing.
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